11th Largest Drug Chain Serving over 2000 Independent Pharmacies

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Clint King, President Associated Pharmacies, Inc.

“I feel honored to have been aroundlong enough to witness the evolution from a small organization to a nationally recognized co-op“

How long have you been employed at API?I have been employed by API since 1996.

In your time with the company, what would you say is the greatest achievement made by API for the customers, industry, and as a company?

I feel honored to have been around long enough to witness the evolution from a small organization employing 12 individuals to a nationally recognized co-op saving independent pharmacy millions of dollars every month. Throughout the growth and changes accompanying growth, API’s commitment to independent pharmacy has remained unchanged. The greatest achievement yet is merging with United Drugs and both organizations remaining true to the core values and missions since inception.

What affect has the merger between API and United Drugs had on operations at API?

We have made significant operational improvements since the merger with United Drugs. Since most of the former United Drugs members were west of Alabama, our focus was servicing Pacific and Mountain time zones comparable to Central and Eastern without negatively impacting the current distribution process. Many changes including extended hours of operation, carrier negotiations, increased order transactions and eventually an additional distribution facility!

A member-owned warehouse is definitely appealing to an independent pharmacy. What are some benefits customers receive when ordering from the APIWarehouse?

Of course supply chain improvements and increased pharmacy profitability are part of the equation but ultimately our members own the two API distribution facilities which in turn means our members are purchasing product from themselves. As participation increases, so does the profitability of their member owned warehouses.

API recently purchased a second member-owned warehouse. Is that facility fully operational?

Yes, the Memphis, TN facility has been fully operational since July of this year and I anticipate before this publication goes to print all west coast members, if they choose, will be supplied from the Memphis, TN facility.

Will all orders eventually be shipped from this new location?

Actually the Alabama facility supplies the majority of product to the Tennessee facility via intercompany transfers not to mention the assets located in Alabama. No, closing the Alabama facility is not in the short or long term goals of the co-op.

What are the immediate and long term benefits you foresee with this additional location?

The immediate benefit is increased capacity. Warehouse sales are higher than ever before seen and the Tennessee addition has undoubtedly assumed a portion of the increased volume. An extended deadline for the west coast is also a short term benefit that many of our members enjoy. Long term I hope to focus on other parts of the country that may benefit from extended deadlines. Disaster coverage and redundancy are also two long term benefits.

What would you see in the future for API and AAP?

We will continue reviewing and implementing changes involving the distribution process to increase efficiency and accuracy. We will also continue monitoring the market for new ideas and innovation that will not only increase the profitability of independent pharmacy but keep independents viable for many years to come.

Scan & Toss® Ordering Solution The easiest way to order from API and Cardinal Health

API’s Scan & Toss® family of programs is based on a simple premise: to maximize AAP pharmacies’ purchase discounts between the member-owned API warehouse and the AAP wholesaler Prime Vendor Agreement (PVA) with Cardinal Health.

Since its beginning in 2007, Scan & Toss® has grown dramatically and expanded from the original Scan & Toss® program adding Scan & Toss®GO™ (for generic Rx only from the API warehouse) and Scan & Toss®ID™ (for pharmacies utilizing perpetual ordering systems).

The original Scan & Toss® program requires only a web-based download and installation of a handheld scanner allowing pharmacies to scan UPC barcodes on pharmaceutical bottles when they are in need of replenishment. The entire installation and training for utilization requires less than thirty minutes once the account setups and scanner configuration are in place.

Scan & Toss® is not only designed for ease of use, but to achieve the maximum purchasing value for each pharmacy. Beginning with API’s warehouse purchasing philosophy, each generic Rx carried by the member-owned warehouse is studied against a spectrum of competitive pricing. If a net-lower cost cannot be achieved by warehousing a particular generic Rx, it will not be carried in the member warehouse and instead the contract item from AAP’s PVA will be chosen by the Scan & Toss® program for replenishment. Ordering generics through Scan & Toss® means not having to study invoice pricing between various suppliers—API has already done that for you and automatically orders the best available option between API and Cardinal Health.

Scan & Toss® ordering solutions also incorporate another innovative feature called BrandSmart™. This program ensures that the best cost of brand Rx available to your pharmacy between API and Cardinal Health is always the one shipped. That’s why it’s “brand smart”!

Scan & Toss® also works on an automatic timer for both API and Cardinal Health orders. Let Scan & Toss® remember to send the orders, not a staff member!

For pharmacies utilizing perpetual inventory systems as part of their workflow, Scan & Toss®ID is the perfect solution, allowing these pharmacies to achieve the highest API and Cardinal Health discounts on both generic and brand Rx purchases. Just send Scan & Toss®ID™ your perpetual order and we will process it through our server, which also utilizes BrandSmart®, so perpetual inventory pharmacies receive all of the benefits of Scan & Toss® without the manual process. This program ensures the top return for the perpetual pharmacy’s purchasing dollar.

Over the last five years, Scan & Toss® ordering solutions have saved API customers and AAP member pharmacies millions of dollars in item costs and increased API warehouse brand and generic Rx purchases from participating accounts driving increased purchasing power and warehouse growth. Since Scan & Toss® watches pharmacy purchases from both the generic and brand Rx cost perspectives, pharmacies can be confident that inventory dollars spent with API and Cardinal Health are streamlined as much as possible and the deepest discounts are achieved. And in addition, all Scan & Toss® ordering solutions are FREE to AAP members and API customers.

To see if a Scan & Toss® ordering solution is right for you, contact your AAP Territory Manager at 877-797-9227.

API provides an unmatched distribution program just for independent pharmacies Incorporated in 1988, Associated Pharmacies, Inc. (API) was formed to meet the needs of the independent pharmacist. Through humble beginnings API has grown from having only a single monthly order for eight cooperating pharmacies to … Continue reading →